The Vietnamese Parliament approved the construction of a new railway leading into China. The project is expected to cost around eight billion euros, with Vietnam planning on completing the project by 2030.
The new line would run for almost 400 kilometres from the Vietnamese port of Haiphong to Lao Cai, on the border with China, via the capital Hanoi. The project was presented to the government by the Vietnam Railway Authority last October, and the Parliament has now approved it with 95 per cent of the members voting in favour.
The future line is expected to bring significant advantages for Vietnam’s manufacturing hubs, especially in the electronic sector with companies such as Samsung and Foxconn. These companies heavily rely on Chinese components for the products, and a new rail line might facilitate their supply. China will likely be the main funding source for the project.
Booming China-Vietnam trade
The rail freight relationship between Vietnam and China has intensified over the past few years and it is continuing to do so. In January this year, for example, volumes moved by rail between the two countries increased by a whooping 760 per cent. Moreover, Vietnam said it is willing to extend the existing rail links with China all the way south to Ho Chi Minh City.